Story perspectives

Powell: Inflation Stable Despite Energy Crisis Concerns

3/31/2026

Summary

Story summary

Federal Reserve Chair Jerome Powell told Harvard University that inflation expectations remain stable despite energy prices tied to the Iran conflict.
He said Federal Reserve's target range of 3.5%–3.75% for the federal funds rate is appropriate while awaiting more data.
Powell emphasized the tension between inflation risks and a weakening labor market.
The Senate has not yet scheduled a confirmation hearing for Powell's successor, Kevin Warsh, amid ongoing investigations.

History

Historical Context

The Federal Reserve Act of 1913 established the Federal Reserve System to address financial instability following the Panic of 1907. This central banking authority aims to manage inflation and stabilize the economy, with a target inflation rate of around 2%. Recent challenges, including rising inflation rates exceeding 9% during the COVID-19 pandemic, highlight ongoing tensions in U.S. monetary policy and its impact on economic stability.

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Story summary

Federal Reserve Chair Jerome Powell told Harvard University that inflation expectations remain stable despite energy prices tied to the Iran conflict.
He said Federal Reserve's target range of 3.5%–3.75% for the federal funds rate is appropriate while awaiting more data.
Powell emphasized the tension between inflation risks and a weakening labor market.
The Senate has not yet scheduled a confirmation hearing for Powell's successor, Kevin Warsh, amid ongoing investigations.

1 / 2